About UsServicesPressNewslettersContact Us
Strategic Advisory Group
Research
Kaulkin Media

Press
Press


Press Releases


Economic Conditions Approach Historical High for ARM Industry

November 16, 2005: BETHESDA, MD - The Kaulkin Ginsberg Index (KGI), the leading indicator of economic conditions affecting the accounts receivable management (ARM) industry, has approached its historical high, although recent news suggests that this may be short lived.

For September 2005, the month for which the most recent economic information is available, the Index reached 1299.3, which is slightly less than June 2005's all-time high of 1303.1. The index remains up 1.2% month over month and 11.1% year over year.

"While the Index continues to reflect broad economic conditions that are friendly to the ARM industry, there is trouble on the horizon," said Paul Legrady, Director of Kaulkin Ginsberg's Research Group. "By next month, the Index will reflect the recent spike in bankruptcy filings, as well as recent declines in the prices of ARM companies. These factors should place considerable downward pressure on the KGI."

In September, the KGI's upward movement was caused by most of its contributing variables.

Variable
September 2005*
Variable
Change*
Effect on KGI*
Unemployment Rate
5.0%
3.4%
Up
Federal Funds Rate
3.62%
3.4%
Up
Charge-off Rate
0.49%
0%
-
Outstanding Consumer Credit
$2.16T
0.4%
Up
Total Market Cap of ARM Stocks
$3.4B
1.1%
Up
Bankruptcy Filings
497,333
0%
-
Consumer Price Index
198.8
1.2%
Up
* See "How is the KGI Calculated," www.kaulkin.com/research/kgi/calculate.cfm

The KGI is a product of Kaulkin Ginsberg's Research Group, which provides industry-specific publications and custom research services to the ARM industry. For more information about the Kaulkin Ginsberg Index, see www.kaulkin.com/research/kgi.cfm or call Paul Legrady, Director of Kaulkin Ginsberg's Research Group, at 301-907-0840 ext. 104.

About Kaulkin Ginsberg Company
Kaulkin Ginsberg is a diversified strategic advisory, media and technology company, providing solutions to accounts receivable management (ARM) and other business services industries since 1989. Strategic advisory services include merger, acquisition and valuation advice, research, growth and operational consulting as well as training and executive search. Kaulkin Ginsberg's Research Group meets the market's demand for industry-related market intelligence, leveraging nearly 15 years of industry insight and proprietary data to support industry professionals and investors in their business decisions. Kaulkin Media publishes CollectionIndustry.com™ and Credit & Collection Daily™, and is the most popular source of industry information. Kaulkin Partners brings the latest technology to creditors and collectors. Read more about Kaulkin Ginsberg at www.kaulkin.com.